Tag Archives: DOR

Taxpayer Challenges Department Authority to Adjust NOL Carryforward, When NOL Was Generated in Tax Years Otherwise Closed by Statute

Can a Department of Revenue auditor reduce a taxpayer’s deduction for a net operating loss (“NOL”) carryforward, even if the NOL was generated in a tax year that is closed under the statute of limitations? This question is the subject of an appeal currently pending at the ATB. The appeal involves a telecommunications company that … Continue Reading

Filing Season Reminder: Department Guidance Regarding Massachusetts Partnership and C Corporation Tax Return Filing Due Dates

Effective for tax years beginning after December 31, 2015, the due date for filing federal tax returns for C corporations and partnerships were revised.  See Public Law 114-41, the “Surface Transportation and Veterans Healthcare Choice Improvement Act of 2015”.  As shown in the table below, C Corporations now have an additional month—until April 15—to file … Continue Reading

Disallowance of Deduction for Interest Paid to Hungarian Affiliate Serves as a Reminder of Department’s Continued Audit Scrutiny of Intercompany Debt

A case recently resolved at the Appellate Tax Board serves as a reminder that Massachusetts’ auditors continue to aggressively challenge the following intercompany transactions: Interest deductions for interest paid to foreign affiliates that are not members of the unitary combined group—even if the foreign affiliate is domiciled in a country with a comprehensive tax treaty … Continue Reading

Filing Season Reminder: Revisions (and Challenges) to Alternative Apportionment Regulation

Any taxpayers considering taking an alternative apportionment position on its corporate excise tax returns this fall should remember that the Department adopted a revised alternative apportionment regulation, 830 CMR 63.42.1, which is applicable to the 2016 tax year. Under the regulation, a taxpayer must file a request for alternative apportionment when it files its tax return.  … Continue Reading

Mark Nunnelly Leaving Position as DOR Commissioner – DOR Now Seeking 3rd Commissioner in Less Than 2 years

Governor Charlie Baker’s office announced in a press release today that Mark Nunnelly has accepted a new role as Executive Director of MassIT, the state technology office, beginning April 4.  In that role, Mr. Nunnelly is expected to lead an effort to “revamp and improve” the way that people interact online with government on matters … Continue Reading

Massachusetts Department of Revenue Launches Pilot Program for Settling Uncertain Tax Issues—Lack of Anonymity in Settlement Process a Concern

Continuing its efforts to improve the process for resolving tax disputes in Massachusetts, the Massachusetts Department of Revenue has released final AP 637 Voluntary Disclosure Program for Settlement of Uncertain Tax Issues (Click Here) outlining a new pilot program for settling “uncertain tax issues” through its voluntary disclosure program.  (Click Here for a redline showing the modest … Continue Reading

Report from the Boston Bar Association Annual Tax Conference

The Boston Bar Association held its annual tax conference this past Thursday, and as always the BBA pulled together a great lineup of practitioners, legislators, and Department of Revenue officials to discuss the latest in Massachusetts state tax.  The event was broken into four sections; one each on tax policy, litigation, and administrative updates, as … Continue Reading

Silver Tsunami Quickly Approaching Department of Revenue Thanks to Early Retirement Incentive Program

On May 4, 2015, Governor Charlie Baker signed into law a bill creating an early retirement incentive program for Massachusetts state employees. Under the incentive plan, employees choosing to retire effective June 30, 2015, will be eligible to add up to five years to either their age or years of service, in order to increase … Continue Reading

Massachusetts Market Sourcing Update: Report from Public Hearing on Market Sourcing and Special Industry Apportionment Regulations

Today, the Department of Revenue held a hearing for the public to present comment regarding the Department’s proposed market sourcing regulation.  In addition, the proposed special industry apportionment regulations for Airline Corporations, Motor Carriers, and Courier and Package Delivery Services; and the proposed corporate nexus regulation were also addressed at today’s hearing.  The proposed regulations were … Continue Reading

DOR Preparing for “Silver Tsunami”

Facing large-scale human capital losses in the next few years, the Department of Revenue has joined forces with Bunker Hill Community College (“BHCC”) to prepare for the retirement of baby boomers – the so-called “silver tsunami.” Over the next five years, the Department expects approximately 500 employees to retire.  According to Commissioner Amy Pitter, this … Continue Reading
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